Bank of New York Mellon Corp. unveiled a new blockchain-based tool Friday that posts up-to-date net asset value (NAV) data for tokenized funds directly on a blockchain. According to company officials, BlackRock will be the first client to implement this technology with their on-chain money market fund, BUIDL.
Trump Administration Policies Create Friendly Crypto Environment
According to a report by Fortune, the financial giant’s move comes amid growing acceptance of blockchain technology in traditional finance, supported by favorable regulatory changes under US President Donald Trump’s administration.
BNY Mellon temporarily paused its crypto custody services during the Biden Administration after the Securities and Exchange Commission issued guidance known as SAB 121, which created balance sheet requirements for companies holding crypto assets for clients.
In 2024, the bank received an exemption allowing it to custody Bitcoin and Ethereum for exchange-traded products without treating them as balance-sheet liabilities. Under Trump, the SEC quickly rescinded the previous guidance, which was widely unpopular among banks and crypto companies.
BNY’s latest crypto product moves beyond custody, and reflects the growth of financial instruments launched on blockchains, such as BlackRock’s on-chain money market fund, BUIDL #BlackRock #BNY #BUIDL #Bitcoin https://t.co/HRHN1RdFM1
— Digital Startup (@digitalstartup5) April 3, 2025
BlackRock Partnership Marks ‘Unprecedented Event’
BlackRock, which depends on BNY Mellon as both fund administrator and custodian for its BUIDL fund, will be the first to use the new tool. Robert Mitchnick, BlackRock’s head of digital assets, called BNY’s ability to bring off-chain data insights to public blockchains “an unprecedented event and a significant milestone for the industry” in a statement shared with Fortune.
The partnership builds on BlackRock CEO Larry Fink’s public statements supporting increased tokenization of financial assets to improve costs and efficiency. While the technology remains limited to specific test cases and mostly blockchain-native customers, this implementation represents a step toward broader adoption.
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Real-Time Data Aims To Boost Fund Creditworthiness
Caroline Butler, BNY’s head of digital assets, explained in an interview with Fortune that the new product will allow more transparent and current information around tokenized funds.
“Because we have expertise in blockchain, other fund accountants in the industry would struggle to do this,” she said. “It sits right in that sweet spot as we continue to add more and more value for clients.”
The tool posts NAV information directly to the blockchain instead of relying on third-party accounting services. According to Butler, this helps investors see current NAV values of instruments like BUIDL, which can improve their creditworthiness. While this type of data sharing isn’t unique to crypto, Butler noted that BNY’s blockchain technology enables the company to offer a more complete set of tools for tokenized funds.
BNY Mellon Continues Blockchain Push Despite Market Volatility
BNY Mellon’s latest offering represents another step into the blockchain sector, which began in 2008 with Bitcoin’s introduction. Despite market ups and downs, the bank has shown ongoing interest in the technology, including a previous launch of a digital asset custody platform for Bitcoin and Ethereum.
In March, Butler testified before the House Financial Services Committee during a hearing on stablecoins. “Embracing blockchain technology in connecting the traditional and digital markets is consistent with BNY’s long track record of supporting innovation in the global financial system,” she stated at the hearing.
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